Changes to the Federal Child Support Guidelines came into force on May 1, 2006

What was changed?

Why have the Federal Child Support Tables been updated?

Will the amendments automatically change the amount of child support paid or received?

Why has a definition of "extraordinary expenses" been added?

Why has the Comparison of Household Standards of Living Test been amended?

What is the amendment to the non-resident provision?

What are the objectives of the Guidelines?

What was changed?

The amendments changed some provisions of the Federal Child Support Guidelines (Guidelines), which were introduced in 1997. They areintended to improve the predictability, consistency and fairness of child support.

The changes include:

• updated Federal Child Support Tables that reflect more recent federal, provincial and territorial tax rates;
• a definition of the term "extraordinary expenses" in the special or extraordinary expenses provision of the Guidelines;
• a deduction for Canada/Quebec Pension Plan contributions and Employment Insurance premiums in the optional Comparison of Household Standards of Living Test;
• a change to the non-resident provision, allowing the courts to take into account higher tax rates of another country in determining the income of a parent who does not live in Canada;
• the replacement of references to the province of "Newfoundland" with the correct reference to the province of "Newfoundland and Labrador".

Why have the Federal Child Support Tables been updated?

The updated child support tables replace the original tables from 1997 and reflect more recent federal, provincial and territorial tax rates.

The federal formula for calculating the amount of child support payments has not changed. Increases and decreases in the updated child support amounts are due to the changes in federal, provincial and territorial taxes between 1997 and 2004. Changes in taxes affect a paying parent's ability to pay child support—they can either increase or decrease ability to pay.

The new table amounts ensure that children continue to benefit from the financial means of parents after separation just as they would if the family was still together. The 2006 child support amounts represent about the same proportion of a paying parents after-tax income as the 1997 child support amounts.

Will the amendments automatically change the amount of child support paid or received?

No. The amendments will not automatically change the amount of child support paid or received.

Under the Guidelines, anyone who has a child support order may take steps to have it reflect the amendments, including the new table amount.

Why has a definition of "extraordinary expenses" been added?

The definition has been added to clarify the meaning of "extraordinary expenses," which various courts across the country have interpreted differently.

Under this amendment, an expense is considered extraordinary if it is higher than the parent requesting the amount can reasonably cover. The requesting parent's income, as well as any child support the requesting parent would receive, is considered to determine if the expense is extraordinary.

Or, if the requesting parent can reasonably cover the expense, the expense may still be considered extraordinary when taking into account:

• the income of the parent requesting the amount (including the child support amount);
• the nature and number of the educational programs and extracurricular activities;
• any special needs and talents of the child;
• the overall costs of the programs and activities; and
• any other similar factor that is relevant.

Why has the Comparison of Household Standards of Living Test been amended?

If either parent claims undue hardship, this amendment allows every income-earning household member to deduct Canada/Quebec Pension Plan contributions and Employment Insurance premiums from their income when completing the test. This increases the fairness of the test since these deductions reduce cash flow and represent funds that are not available to the parents' households.

What is the amendment to the non-resident provision?

The amendment to the non-resident provision of the Guidelines allows a court to reduce a parent's income for the purposes of determining Guidelines income where the parent lives outside Canada and has to pay a higher effective rate of tax in the other country. In such cases, a parent has a reduced ability to pay, when compared with Canadian residents with similar income.

What are the objectives of the Guidelines?

The objectives of the Guidelines are:

• to establish a fair standard of support for children that ensures that they continue to benefit from the financial means of both parents after separation;
• to reduce conflict and tension between parents by making the calculation of child support orders more objective;
• to improve the efficiency of the legal process by giving courts and parents guidance in setting the levels of child support orders and encouraging settlement; and
• to ensure consistent treatment of parents and children who are in similar circumstances.

For more information about the Federal Child Support Guidelines, please see The Federal Child Support Guidelines: Step-by-Step.